Market Update
U.S. Market Averages Power Ahead After Weaker Wholesale Inflation and Bank Earnings
Barry Adams
12 Jan, 2024
New York City
Major averages on Wall Street advanced in early trading on the final trading day of this week, and investors digested the latest earnings results from banks and airlines.
JPMorgan Chase, Citigroup, and Bank of America reported sharply lower earnings from a year ago after banks took hefty charges linked to the regional bank crisis in 2023.
Wells Fargo reported higher earnings, helped by cost-cutting initiatives and higher interest rates compared to the previous year.
Delta Air Lines reported sharply higher earnings on strong travel demand and a record number of passengers paying higher ticket prices for premium services.
The S&P 500 index and the Nasdaq Composite advanced more than 0.4% after lower-than-expected wholesale inflation data.
Producer price index decreased 0.1% from the previous month in December, matching the rate in the previous month, the U.S. Bureau of Labor Statistics reported Friday.
The measure of wholesale inflation rose 1% from a year ago after rising at a 0.8% rate in the previous month.
Core inflation decelerated to 1.8% from 2.0% on an annual basis.
U.S. Indexes and Yields
The S&P 500 index increased 0.4% to 4,798.95, and the Nasdaq Composite rose 0.5% to 15,044.61.
The yield on 2-year Treasury notes decreased to 4.27%. 10-year Treasury notes edged down to 3.99%, and 30-year Treasury bonds eased to 4.21%.
WTI crude oil increased $2.52 to $74.44 a barrel, and natural gas prices increased 8 cents to $3.17 a thermal unit.
Gold increased by $21.79 to $2,048.90 an ounce, and investors debated the future interest rate path.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.52.
U.S. Stock Movers
JP Morgan Chase rose 2.1% to $173.75 after the bank reported quarterly results and a rise in adjusted earnings, excluding fees paid to the government tied to the seizures of regional banks.
Revenue in the fourth quarter increased 12% to $39.94 billion, and net income declined 15% to $9.31 billion, or $3.04 per share.
Wells Fargo declined 1.1% to $48.46 despite the bank reporting higher earnings in the fourth quarter, but the bank warned that net interest income in 2024 is likely to be lower than the previous year.
Revenue in the fourth quarter increased 2% to $20.48 billion, and net income rose to $3.45 billion, or 86 cents, from $3.16 billion, or 75 cents, a year ago.
Net interest income in the quarter declined 5% from a year ago to $12.78 billion, and the bank warned that level could decline between 7% and 9% on an annual basis from $52.4 billion in 2023.
Citigroup rose 2.2% to $53.21 after the bank reported a quarterly loss as the company booked charges linked to restructuring, overseas risks, and last year's regional banking crisis.
Revenue in the fourth quarter decreased 3% to $17.4 billion, net income swung to a loss of $1.8 billion from a profit of $3.5 billion, and diluted earnings per share declined to ($1.16) from $1.16 a year ago.
Bank of America decreased 2.7% to $32.25 after the bank reported lower quarterly earnings because of one-time charges assessed by the FDIC and transitioning away from the London Interbank Offered Rate.
Revenue in the quarter increased to $22 billion, net income declined 50% to $3.1 billion from $7.1 billion, and diluted earnings per share dropped to 35 cents from 85 cents a year ago.
The charges in the quarter include a $1.6 billion pre-tax charge to transition away from LIBOR and a special fee of $2.1 billion charged by the Federal Deposit Insurance Corp. to rescue Silicon Valley Bank and Signature Bank.
Delta Air Lines declined 5.5% to $39.92 after the international carrier reported a sharply higher profit but lowered its 2024 outlook.
Operating income in the fourth quarter increased by 6% to $14.2 billion from $13.4 billion, net income soared to $2.03 billion from $828 million, and diluted earnings per share rose to $3.16 from $1.29.
The company guided full-year 2024 earnings to range between $6.0 and $7.0 per share, lower than the previous estimate of at least $7 per share released last year.
Revenue in the first quarter of 2024 is expected to increase between 3% and 6%, and earnings per share between 25 cents and 50 cents.
U.S. Movers: Bank of America, Citigroup, Delta Air Lines, JP Morgan, Wells Fargo
Scott Peters
12 Jan, 2024
New York City
JP Morgan Chase rose 2.1% to $173.75 after the bank reported quarterly results and a rise in adjusted earnings, excluding fees paid to the government tied to the seizures of regional banks.
Revenue in the fourth quarter increased 12% to $39.94 billion, and net income declined 15% to $9.31 billion, or $3.04 per share.
Wells Fargo declined 1.1% to $48.46 despite the bank reporting higher earnings in the fourth quarter, but the bank warned that net interest income in 2024 is likely to be lower than the previous year.
Revenue in the fourth quarter increased 2% to $20.48 billion, and net income rose to $3.45 billion, or 86 cents, from $3.16 billion, or 75 cents, a year ago.
Net interest income in the quarter declined 5% from a year ago to $12.78 billion, and the bank warned that level could decline between 7% and 9% on an annual basis from $52.4 billion in 2023.
Citigroup rose 2.2% to $53.21 after the bank reported a quarterly loss as the company booked charges linked to restructuring, overseas risks, and last year's regional banking crisis.
Revenue in the fourth quarter decreased 3% to $17.4 billion, net income swung to a loss of $1.8 billion from a profit of $3.5 billion, and diluted earnings per share declined to $1.16 from $1.16 a year ago.
Bank of America decreased 2.7% to $32.25 after the bank reported lower quarterly earnings because of one-time charges assessed by the FDIC and transitioning away from the London Interbank Offered Rate.
Revenue in the quarter increased to $22 billion, net income declined 50% to $3.1 billion from $7.1 billion, and diluted earnings per share dropped to 35 cents from 85 cents a year ago.
The charges in the quarter include a $1.6 billion pre-tax charge to transition away from LIBOR and a special fee of $2.1 billion charged by the Federal Deposit Insurance Corp. to rescue Silicon Valley Bank and Signature Bank.
Delta Air Lines declined 5.5% to $39.92 after the international carrier reported a sharply higher profit but lowered its 2024 outlook.
Operating income in the fourth quarter increased by 6% to $14.2 billion from $13.4 billion, net income soared to $2.03 billion from $828 million, and diluted earnings per share rose to $3.16 from $1.29.
The company guided full-year 2024 earnings to range between $6.0 and $7.0 per share, lower than the previous estimate of at least $7 per share released last year.
Revenue in the first quarter of 2024 is expected to increase between 3% and 6%, and earnings per share between 25 cents and 50 cents.
Europe Movers: Airbus, Burberry Group, Energy Stocks, Santhera Pharma, Vistry Group
Inga Muller
12 Jan, 2024
Frankfurt
European markets advanced on the final trading day of the week and extended weekly gains after choppy trading in the previous session.
The DAX index increased 0.9% to 16,696.72, the CAC-40 index rose 1.1% to 7,469.05, and the FTSE 100 index inched higher by 0.7% to 7,629.48.
For the week, the DAX index added 0.8%, the CAC 40 index advanced 0.5%, and the FTSE 100 index edged down 0.8%.
The yield on 10-year German bonds edged down to 2.16%; French bonds inched lower to 2.69%; the UK gilts edged down to 3.80%; and Italian bonds decreased to 3.76%.
Energy companies traded higher after crude oil prices rebounded following the U.S. and U.K. military strikes targeting Houthi rebels in Yemen.
BP plc increased 1.2% to 459.75 pence, and Shell PLC advanced 1.3% to €29.12.
Burberry Group declined 9.2% to 1,235.50 pence after the luxury fashion group issued a profit warning, citing slowing demand.
Vistry Group PLC rose 0.7% to 974.50 pence after the homebuilder said adjusted pre-tax income is likely to surpass its previous estimate and match previous-year results.
The company estimated annual adjusted pre-tax income to be higher than the previous estimate of £410 million and closer to last year's £418.4 million.
The company also guided forward-looking sales of £4.5 billion, higher than £4.0 billion in the previous year.
Airbus SE increased 2.5% to €147.42 after the aviation company reported record aviation airplane orders, driven by large orders from Air India and Indigo and additional orders by Turkish Airlines.
Airbus in 2023 delivered 735 commercial planes to 87 customers around the world, increase of 11% from 661 deliveries in 2022.
Santhera Pharmaceuticals jumped 7.4% to CHF 9.62 after the Swiss biotech company said its product was approved by the UK's health regulator for the treatment of Duchenne muscular dystrophy patients.
European Markets Extend Weekly Gains, France Confirms Inflation Estimate
Bridgette Randall
12 Jan, 2024
Frankfurt
Benchmark indexes in Europe advanced in Friday's trading, and investors overlooked accelerating inflation in the U.S. and rising tensions in the Middle East.
Investors bid up stocks after dovish comments expressed in the European Central Bank's latest economic bulletin, prepared in advance for the December 14 meeting for policymakers and released Friday.
The report noted that the most difficult phase of combating inflation may be behind and added that the central bank is prepared to lower interest rates once inflation is on a sustainable path to 2%.
The euro area GDP growth is expected to slow down to 0.6% in 2023 from 3.4% in 2022, but the growth is expected to rebound to 0.8% in 2024 and stabilize at 1.5% in 2025, the central bank noted in its economic bulletin released Friday.
Overall inflation is expected to average 5.4% in 2023 and continue to decelerate to 2.7% in 2024, 2.1% in 2025, and 1.9% in 2026, the Economic Bulletin from the ECB noted in its latest update.
France Confirms December Inflation Rate
In a separate report, France confirmed its inflation accelerated for the first time in four months in December, as initially estimated in the preliminary data released by the statistical agency INSEE.
Consumer price inflation increased 3.7% from a year ago in December, driven by higher costs of energy and services, and faster than 3.5% in November.
UK GDP Rebounded In November
The UK economy recovered in November after services and manufacturing activities edged higher, the Office for National Statistics reported on Friday.
Real gross domestic product increased by 0.3% from the previous month in November, offsetting the 0.3% decrease in October.
GDP expanded at the fastest pace in five months, powered by a 0.4% increase in service output.
However, over the three months to November, GDP shrank by 0.2%, keeping the worries of a technical recession alive.
Europe Indexes and Yields
The DAX index increased 0.9% to 16,696.72, the CAC-40 index rose 1.1% to 7,469.05, and the FTSE 100 index inched higher by 0.7% to 7,629.48.
The yield on 10-year German bonds edged down to 2.16%; French bonds inched lower to 2.69%; the UK gilts edged down to 3.80%; and Italian bonds decreased to 3.76%.
The euro edged higher to $1.096, the British pound inched higher to $1.275, and the U.S. dollar eased to 85.35 Swiss cents.
Brent crude advanced $1.97 to $79.38 a barrel, and the Dutch TTF natural gas increased by €0.54 to €31.36 per MWh.
Europe Stock Movers
Energy companies traded higher after crude oil prices rebounded following the U.S. and U.K. military strikes targeting Houthi rebels in Yemen.
BP plc increased 1.2% to 459.75 pence, and Shell PLC advanced 1.3% to €29.12.
Burberry Group declined 9.2% to 1,235.50 pence after the luxury fashion group issued a profit warning, citing slowing demand.
Vistry Group PLC rose 0.7% to 974.50 pence after the homebuilder said adjusted pre-tax income is likely to surpass its previous estimate and match previous-year results.
The company estimated annual adjusted pre-tax income to be higher than the previous estimate of £410 million and closer to last year's £418.4 million.
The company also guided forward-looking sales of £4.5 billion, higher than £4.0 billion in the previous year.
Airbus SE increased 2.5% to €147.42 after the aviation company reported record aviation airplane orders, driven by large orders from Air India and Indigo and additional orders by Turkish Airlines.
Santhera Pharmaceuticals jumped 7.4% to CHF 9.62 after the Swiss biotech company said its product was approved by the UK's health regulator for the treatment of Duchenne muscular dystrophy patients.
India Movers: HDFC AMC, Infosys, Mahindra & Mahindra, TCS, Tata Consumer Products, Tata Power
Arun Goswami
12 Jan, 2024
Mumbai
Stocks in Mumbai advanced after TCS and Infosys reported quarterly results that met or surpassed market expectations.
The Sensex index increased 570.02 points to 71,925.24, and the Nifty index rose 176.65 points to 21,688.75.
On the Mumbai stock exchange, 437 stocks traded at their 52-week highs and 6 stocks traded at their 52-week lows.
Infosys gained 7.1% to ₹1,600.80 after the company reported better-than-expected quarterly results.
Revenue in the quarter increased 1.2% to ₹38,821 crore from ₹38,318 crore and net income fell 7.3% to ₹6,106 crore from 6,506 crore, and diluted earnings per share decreased to ₹14.74 from ₹15.70 a year ago.
Tata Consultancy Services advanced 3.8% to ₹3,883.0 after the company reported stronger-than-expected quarterly results.
Revenue in the quarter increased to ₹61,445 core from ₹58,749 crore, profit after-tax rose 2% to ₹11,097 crore from ₹10,883 crore, and diluted earnings per share advanced to ₹30.29 from ₹29.74 a year ago.
Tata Power Company increased 0.8% to ₹360.30 after the company signed a preliminary contract with Gujarat State to develop 10 GW of renewable energy power projects with an investment of up to ₹70,000 crore.
Mahindra & Mahindra decreased 1.4% to ₹1,606.20, and the company said it plans to invest ₹630 crore in Mahindra Electric Automotive Ltd. through the subscription of the upcoming rights issue.
HG Infra Engineering rose 3.5% to ₹916.10 after the company won a 716 crore project from Central Railways.
Tata Consumer Products added 2% to ₹1,141.75 after the company is in advanced talks to acquire Organic India, backed by Fabindia and Capital Foods.
HDFC Asset Management Company decreased 2.2% to ₹3,423.40 after the company reported December quarter profit soared 32% to ₹489.7 crore.
Revenue in the quarter increased to 813.8 crore from 662.9 crore, profit after tax advanced to ₹489.7 crore from ₹369.4 crore, and diluted earnings per share rose to ₹22.91 from ₹17.31 a year ago.
Arvind Ltd increased 2.4% to ₹290.65 after the company said it signed a preliminary agreement to supply advanced uniform fabric to the Indian Navy.
Nikkei Trades at a New 34-year High; China Inflation Declines in the Third Consecutive Month
Arjun Pandit
12 Jan, 2024
Mumbai
Asian markets traded mostly higher on Friday, with Japan's indexes leading the gainers in the region.
The Nikkei index advanced 1.1% to 35,435.04, reaching a new 34-year high on hopes that the Bank of Japan will keep its ultra-loose monetary policy intact, and the yen weakened to 145 against the U.S. dollar.
China's market indexes lacked direction after the release of consumer and producer price inflation and international trade data.
The Hang Seng index inched up 0.03% to 16,307.10, and the CSI 300 index fell 0.2% to 3,290.17.
Consumer and producer prices continued to decline in December, on the back of weak consumer demand and foreign orders.
The consumer price index decreased for the third month in a row and fell 0.3%, while the producer price index declined 2.7% from a year ago, respectively.
China's exports unexpectedly rose 2.3% to $303.6 billion, and imports edged up 0.2% to $228.2 billion, resulting in a trade surplus increase of $75.34 billion.
Weak domestic demand kept overall import growth low.
In 2023, China's exports decreased 4.6% to $3.38 trillion and imports fell 5.5% to $2.56 trillion, resulting in a trade surplus decline of 6% to $820 billion.
Elsewhere in the region, the KOSPI index fell 0.8% to 2,520.49 and the ASX 200 index fell 0.3% to 7,489.20.
India Indexes Advanced After TCS and Infosys Beat Estimates
Stocks in Mumbai opened on a higher note after investors digested a flood of international economic updates and quarterly results from tech services exporters.
The Nifty and Sensex indexes gained 0.3% in early trading after U.S. inflation accelerated in December, but China's consumer prices declined in the month.
Moreover, China's exports and imports rose in December on the back of rising demands for solar cells, electric vehicles, and lithium batteries.
On the domestic earnings front, TCS reported quarterly profit increased 2%, while Infosys net income decreased by 7%.
Investors are looking forward to the release of quarterly results from HCL and Wipro later in the day.
India's inflation and industrial output data are also scheduled to be released later in the day.
Volatile food prices are likely to keep overall inflation high.
Stocks Remain Under Pressure Across Atlantic After U.S. Interest Rate Uncertainties Heightened
Barry Adams
11 Jan, 2024
New York City
Stocks turned lower after consumer price inflation accelerated in December and poured cold water over the expectation of interest rate cuts as early as March.
The S&P 500 index and the Nasdaq Composite traded in a tight range in early trading, and bank stocks were in focus ahead of the release of quarterly results on Friday.
The latest update on the labor market showed tight conditions persisting in the first week of the new year.
The initial jobless claims declined by 1,000 from the previous week's upwardly revised 202,000 for the week ending January 6, the U.S. Department of Labor reported Thursday.
Continuing claims declined by 34,000 to 1.834 million in the previous week.
The decline in initial and continuing claims was larger than expected, suggesting that tight labor market conditions are likely to persist and may support higher wage growth in the weeks ahead.
Higher inflation combined with tight labor market conditions is likely to encourage policymakers to keep higher rates for longer and extend stock market losses in the second week in a row.
Consumer Price Inflation Accelerated In December
The consumer price index advanced to 3.4% in December, from a five-month low of 3.1% in November, the U.S. Bureau of Labor Statistics reported Thursday.
Over half of the increase in inflation was driven by a rise in shelter prices, and the index for shelter rose at 6.2% compared to 6.5% in the previous month.
The slower decline in energy prices by 2.0% compared to 5.4% fall in November, supported the rebound in inflation in the month.
Compared to November, consumer prices rose 0.3%, the largest increase in three months.
Annual core inflation, which excludes food and energy, eased to 3.9% in December from 4.0% in November, and monthly core inflation rose 0.3% in the month, matching the rate in the previous month.
The shelter inflation was the largest contributor to core inflation in the month, after prices rose at 0.5% in December, faster than 0.4% rise in the previous month.
U.S. Indexes and Yields
The S&P 500 index decreased 0.1% to 4,776.81, and the Nasdaq Composite declined 0.1% to 14,731.08.
The yield on 2-year Treasury notes decreased to 4.34%. 10-year Treasury notes edged down to 3.98%, and 30-year Treasury bonds eased to 4.16%.
WTI crude oil increased $1.54 to $72.91 a barrel, and natural gas prices increased 17 cents to $3.21 a thermal unit.
Gold decreased $7.04 to $2,016.31 an ounce, and investors debated the future interest rate path.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.27.
U.S. Stock Movers
KB Home declined 3% to $61.28 after the home builder reported its fourth-quarter results.
Revenue in the quarter decreased to $1.67 billion from $1.94 billion, net income dropped to $150.3 million from $216.4 million, and diluted earnings per share fell to $1.85 from $2.47.
Homes delivered in the quarter decreased 10% to 3,407, and the average selling price declined 4.5% to $487,300 from $510,400 a year ago.
However, demand for new homes increased in the final quarter, and the cancellation rate declined.
Net orders for the fourth quarter were up 176% to 1,909, and net order value grew 157% to $932.6 million.
However, the backlog of home orders declined to 5,510 from 7,662, and the backlog value fell to $2.67 billion from $3.69 billion a year ago.
Bitcoin-focused stocks traded higher after the SEC approved the launch of spot bitcoin-focused ETFs.
Robinhood Markets rose 4.4% to $12.63, Marathon Digital Holdings gained 6.6% to $27.30, and MicroStrategy jumped 4.9% to $593.20.
Sharp Reversal In European Markets . Industrial Production Growth In Italy and Spain Diverge
Market indexes in Europe advanced after falling for two days in a row in early trading, and investors debated the path of interest rates and the economic outlook.
However, market indexes dropped more than 1% in late afternoon trading after the release of December U.S. inflation, denting hopes of interest rate cuts in March.
Market indexes in 2024 have been down between 1% and 2% in Frankfurt, Paris, and London, amid a cautious economic outlook and interest rate uncertainties.
Closer to home, investors reviewed the latest update on industrial output in Italy and Spain and awaited the release of consumer price inflation in the U.S. later in the day.
Italy's industrial production decreased 1.5% from the previous month in November after falling 0.2% in October, the statistical agency ISTAT reported Thursday.
Industrial production dropped 3.1% from a year ago, the tenth monthly decline in a row.
Spain's industrial production increased by 0.8% from a year ago in November, the statistical agency INE reported Thursday.
On a seasonally adjusted basis, industrial production increased by 1% in November, rebounding from an upwardly revised 0.7% decline in the previous month.
Europe Indexes and Yields
The DAX index decreased 0.9% to 16,547.03, the CAC-40 index fell 0.3% to 7,387.62, and the FTSE 100 index dropped 1% to 7,576.59.
The yield on 10-year German bonds edged down to 2.18%; French bonds inched lower to 2.71%; the UK gilts edged down to 3.78%; and Italian bonds decreased to 3.80%.
The euro edged higher to $1.096, the British pound inched higher to $1.274, and the U.S. dollar eased to 85.12 Swiss cents.
Brent crude decreased $1.82 to $78.62 a barrel, and the Dutch TTF natural gas decreased by €0.05 to €30.94 per MWh.
Europe Stock Movers
Mining companies advanced after copper prices rebounded in London trading following the decline in the U.S. dollar in the last three days.
Anglo American rose 2.5% to 1,868.0 pence, Antofagasta advanced 2.2% to 1,617.31 pence, and Glencore inched up 0.3% to 449.25 pence.
Informa PLC decreased 3% to 761.49 pence despite the education and trade show organizers reporting stronger-than-expected results.
The in-person event organizer estimated 2024 revenue between £3.425 billion and £3.475 billion and adjusted operating income in the range of £945 million and £965 million, or between $1.21 billion and $1.23 billion.
The company estimated 2023 revenue of £3.165 billion and adjusted operating income around £945 million.
The company confirmed an annual 18 pence per share dividend for 2023.
Marks & Spencer Group decreased 4.9% to 264.10 pence after the UK-based retailer reported strong holiday sales but warned of an uncertain sales outlook in the current year.
Vinci SA increased 0.07% to €115.16 after the French construction and engineering company reduced the size of its revolving credit line with a syndicate of 23 banks.
VAT Group AG rose 1.5% to CHF 406.50 after the Swiss industrial valve maker reported better-than-expected orders in the fourth quarter.
VAT recorded preliminary fourth-quarter orders of around CHF 237 million, down 5% from a year earlier but up 44% sequentially from the third quarter of 2023.
The rise in sequential orders showed improving market conditions in the semiconductor industry, but the company also won new orders in the advanced industrial business unit.
Preliminary fourth quarter net sales came in slightly above the mid-point of the guidance range of CHF 200 to 230 million provided in October 2023 and amounted to approximately CHF 221 million, down 24% from a year ago but up 6% from the previous quarter.
Nikkei Jumps to a 34-year High; China Stocks Struggle Near Lows
Asian markets traded higher following the rise in New York overnight trading.
The Nikkei 225 average jumped nearly 1.9% to 35,091.50 and traded at a 34-year high for the second day in a row after the yen eased near 145 against the U.S. dollar.
In a broad rally, Japanese stocks advanced on the hopes that the Bank of Japan would continue its massive stimulus program and retain its ultra-loose policy, making domestic assets cheaper for foreign investors.
The KOSPI index edged up 0.1% to 35,091.50 after the Bank of Korea left its key lending rate unrevised at 3.5%, matching market expectations.
The central bank held its reference rate steady for the eighth time in a row amid record household debt, rising financial stress among real estate developers, and falling inflation.
Stocks in China advanced in a technical rebound after fund managers searched for bargains amid cheap valuations, weak investor interest, and the exodus of foreign investors.
Tech stocks led the gainers in Hong Kong, and financial stocks were among the leading gainers in Shanghai trading.
The Hang Seng index jumped 1.5% to 16,339.83, and the CSI 300 index added 0.3% to 3,286.77, amid improving sentiment in Chinese stocks.
The Hong Kong index halted a seven-day slide, supported by buying from fund managers based in mainland China, but the broader index on the mainland continued to drift lower.
Both indexes are down 4% since the start of the new year and extended 4-year losses to above 40%.
China is scheduled to release its inflation and international trade data on Friday.
India Stocks Advance Ahead of Inflation and Industrial Output Reports
Stocks in Mumbai traded higher, and investors awaited the release of earnings from tech services exporters and economic updates on inflation and industrial output.
Benchmark indexes advanced 0.4% amid a positive global market backdrop after mega-cap stocks led another day of advance in overnight trading in New York.
Crude oil prices in international trade edged down after the U.S. government agency showed an increase in crude oil inventories at the end of last week by 1.38 million barrels.
Over the last three weeks, crude oil prices have been volatile, with a downward bias.
Traders are confronting two diverging forces impacting the energy market.
Houthi rebel attacks on merchant ships in the Red Sea are raising the prospect of a wider war in the Middle East and driving prices higher.
But crude oil prices are kept in check by the growing international supply of crude oil from the U.S. and weaker demand growth in China.
Consumer Price Inflation Accelerated In December
Brian Turner
11 Jan, 2024
New York City
The consumer price index advanced to 3.4% in December, from a five-month low of 3.1% in November, the U.S. Bureau of Labor Statistics reported Thursday.
Over half of the increase in inflation was driven by a rise in shelter prices, and the index for shelter rose at 6.2% compared to 6.5% in the previous month.
The slower decline in energy prices by 2.0% compared to 5.4% fall in November, supported the rebound in inflation in the month.
Compared to November, consumer prices rose 0.3%, the largest increase in three months.
Annual core inflation, which excludes food and energy, eased to 3.9% in December from 4.0% in November, and monthly core inflation rose 0.3% in the month, matching the rate in the previous month.
The shelter inflation was the largest contributor to core inflation in the month, after prices rose at 0.5% in December, faster than 0.4% rise in the previous month.
U.S. Movers: Banks, Chewy, Crypto Stocks, KB Home
Scott Peters
11 Jan, 2024
New York City
KB Home declined 3% to $61.28 after the home builder reported its fourth-quarter results.
Revenue in the quarter decreased to $1.67 billion from $1.94 billion, net income dropped to $150.3 million from $216.4 million, and diluted earnings per share fell to $1.85 from $2.47.
Homes delivered in the quarter decreased 10% to 3,407, and the average selling price declined 4.5% to $487,300 from $510,400 a year ago.
However, demand for new homes increased in the final quarter, and the cancellation rate declined.
Net orders for the fourth quarter were up 176% to 1,909, and net order value grew 157% to $932.6 million.
However, the backlog of home orders declined to 5,510 from 7,662, and the backlog value fell to $2.67 billion from $3.69 billion a year ago.
Bitcoin-focused stocks traded higher after the SEC approved the launch of spot bitcoin-focused ETFs.
Robinhood Markets rose 4.4% to $12.63, Marathon Digital Holdings gained 6.6% to $27.30, and MicroStrategy jumped 4.9% to $593.20.